401k
Roth vs Traditional 401(k)

Roth 401(k) vs Traditional 401(k) Calculator

Compare hypothetical Roth and traditional 401(k) outcomes using your contribution, investment return and estimated tax rates.

Two different tax treatments

Traditional

Tax treatment generally occurs when money is distributed.

Roth

Contributions are taxed before entering the account; qualified distributions are generally tax-free.

Your assumptions matter The calculator lets you enter estimated current and retirement tax rates instead of assuming one universal answer.

Compare Roth and Traditional 401(k) Contributions

Enter your assumptions to estimate the future value of an equal employee contribution and the estimated after-tax value of each account.

Your assumptions

Your current age.
Age when you expect to retire.
Used to calculate your contribution.
Percentage of salary contributed.
Existing balance modeled equally in both scenarios.
Example: 50% means $0.50 per eligible $1.
Salary percentage eligible for matching.
Hypothetical annual investment return.
Assumed annual salary increase.
Simplified marginal-rate assumption.
Simplified rate applied to traditional withdrawals.
How this model compares them: Both scenarios use the same employee contribution percentage, employer-match assumptions and investment return. Traditional contributions are modeled as pre-tax; Roth contributions are modeled as after-tax. The calculator then applies the entered retirement tax rate to the traditional balance.

Your Roth vs Traditional Result

Hypothetical projection based on your assumptions
Difference in estimated after-tax value $0 Change your assumptions to update the comparison.
Roth 401(k) future value $0 Modeled account value
Traditional future value $0 Before retirement taxes
Roth estimated after-tax $0 Assuming qualified distribution
Traditional estimated after-tax $0 After modeled retirement tax
Total employee contributions $0 Same modeled contribution
Employer contributions $0 Modeled separately from tax treatment
Estimated after-tax retirement value $0 difference
Roth: $0 Traditional: $0

How the Tax Treatment Differs

The central difference is generally when income tax is applied to the employee contribution and its investment growth.

PRE-TAX

Traditional 401(k)

Traditional employee elective deferrals generally aren't included in taxable income when contributed. Distributions are generally taxable when withdrawn.

Contribution Pre-tax
Investment growth Tax-deferred
Qualified retirement withdrawal Generally taxable
AFTER-TAX

Roth 401(k)

Designated Roth contributions are included in income when made. Qualified distributions from the Roth account are generally not included in taxable income.

Contribution After-tax
Investment growth Tax-free if qualified
Qualified retirement withdrawal Generally tax-free

Roth 401(k) vs Traditional 401(k)

The accounts can use the same workplace plan while applying different tax treatment to employee contributions and distributions.

Feature Traditional 401(k) Roth 401(k)
Employee contribution Generally pre-tax After-tax
Tax treatment at contribution Generally reduces current taxable income Included in current taxable income
Investment growth Tax-deferred Generally tax-free when distributed as part of a qualified distribution
Qualified retirement distribution Generally taxable Generally tax-free
Income limit for participation No general income limit for making a designated contribution No income limit for designated Roth 401(k) contributions
Employee contribution limit Shares the applicable 401(k) elective-deferral limit Shares the applicable 401(k) elective-deferral limit
Employer match May be available May be available if the plan permits
Tax timing Generally later Generally now

What Can Change the Comparison?

The calculator intentionally uses assumptions instead of treating one account type as universally preferable.

TAX

Current tax rate

A traditional contribution can affect taxable income today, while a designated Roth contribution is included in current taxable income.

FUT

Retirement tax rate

The calculator applies your estimated retirement tax rate to the traditional balance to illustrate the effect of future taxation.

%

Investment return

The longer the money remains invested, the more the assumed return affects the modeled account values.

$

Contribution amount

Higher contributions generally increase the amount available for investment in either account type.

+

Employer matching

Your plan's matching formula can materially affect total retirement contributions.

AGE

Time horizon

Years until retirement affect how long contributions and investment growth are modeled.

2026 401(k) Contribution Limits

Roth and traditional employee deferrals share the applicable employee elective-deferral limit.

2026 standard employee elective-deferral limit $24,500

Traditional and Roth employee elective contributions are subject to the same aggregate employee deferral limit.

Age 50+ catch-up Generally $8,000 in 2026, if permitted by the plan.
Age 60–63 higher catch-up $11,250 in 2026 for participants meeting the applicable rules.
Combined Roth + traditional deferrals Employee elective deferrals across the two types count toward the applicable aggregate limit.
Employer contributions Employer matching and other employer contributions are subject to separate overall plan contribution rules.
2026 note: The IRS lists a $24,500 employee elective-deferral limit for 401(k) plans, with generally an additional $8,000 catch-up amount for participants age 50 or older and a higher $11,250 catch-up limit for certain participants ages 60 through 63. :contentReference[oaicite:2]{index=2}

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Roth vs Traditional 401(k) FAQ

The primary difference is tax treatment. Traditional employee contributions are generally made on a pre-tax basis, while designated Roth contributions are made with after-tax dollars. Qualified Roth distributions are generally tax-free, while traditional distributions are generally taxable.
If your employer's plan permits both, you can generally split your elective deferrals between traditional and designated Roth contributions. The combined employee deferrals are subject to the applicable annual limit.
The IRS states that there are no income limits for determining whether you can make designated Roth contributions to a workplace plan. Your plan must offer the Roth feature, however.
Employer matching treatment depends on the plan. The IRS states that an employer can make matching contributions on designated Roth contributions, and plan rules determine how the match is allocated.
No. It uses simplified tax-rate assumptions entered by the user. Actual federal and state tax liability can depend on filing status, deductions, credits, income sources, tax law and other circumstances.
No. The result is a mathematical illustration based on the assumptions entered. The comparison can change substantially when the current tax rate, retirement tax rate, contribution amount, investment period or other assumptions change.
Generally, yes. Qualified distributions from a designated Roth account are generally not included in income. Specific qualification rules apply, including applicable timing requirements.

Continue Your 401(k) Planning

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Educational disclaimer: This calculator is provided for educational and informational purposes only. It uses hypothetical assumptions and simplified tax rates. It does not calculate your actual federal or state tax liability, predict investment returns, or provide personalized financial, investment or tax advice. Actual results depend on your plan provisions, tax situation, contribution limits, investment performance, fees and applicable law.